New York Markets After Hours

Sports Authority restates prior results

ChelseaBellows

SAN FRANCISCO (MarketWatch) -- The Sports Authority Inc. said it has completed a review of its lease accounting method and as a result, issued restated and revised prior financial results Thursday after the closing bell.

The change in lease accounting decreased fiscal 2005 fourth-quarter earnings by 1 cent a share, in line with its previous estimate. For fiscal 2004, the change reduced earnings by 2 cents a share, compared with its previous reduction estimate of 8 cents a share.

Sports Authority said the accounting adjustments reduced net income by $100,000, or 1 cent a share; $200,000, or 1 cent a share; and $300,000, or 2 cents a share, for fiscal years 2003, 2002 and 2001, respectively.

The company said its previous fiscal 2005 forecast, excluding the impact of lease accounting adjustments and option expense, remains unchanged at $1.90 to $1.95 a share. The revised estimated impact of the lease accounting corrections on fiscal 2005 is a reduction of between 3 cents to 5 cents a share, as compared to the previously forecast reductions of 8 cents to 10 cents a share.

The Englewood, Colo.-based company's previous fiscal 2005 first-quarter earnings forecast also remains unchanged at 25 cents to 27 cents a share. The revised estimated impact of the lease accounting corrections in the first quarter is a reduction of 1 cent a share, as compared to the previously forecast reduction of 2 cents to 3 cents a share. As a result, its first-quarter earnings outlook is 24 to 26 cents a share.

Shares of The Sports Authority
TSA, -7.30%
dropped 30 cents to close at $27.75, but rose a penny in after-hours trade.

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